Access to insurance in FNQ, especially for small strata schemes, is expensive and hard to find. With $100k excess charges for a named cyclone, how do small strata schemes navigate this?
In FNQ, a severely limited number of insurance companies are willing to insure strata buildings because of the risk of cyclone and flood events. The pool of insurers becomes even more restricted for small strata complexes.
We have one insurance company available, and they charge enormous premiums and $100K excess charges in the event of a named cyclone and/or storm surge flooding.
How can we reach a broader base of companies willing to insure small strata schemes in FNQ?
How do we deal with potentially $200K worth of excesses if a named cyclone trashes and floods our strata without charging a $7K+ special levy per lot?
A small strata does not carry the cash needed to absorb this large outlay.
The cyclone reinsurance pool should mean more insurers offering cover at a more affordable rate.
With a building of more than 10 lots insured for a sum greater than $5million, currently limited insurers will quote. Usually, the holding insurer is the most likely insurer to offer cover.
Notwithstanding, the cyclone reinsurance pool should come into force for insurers in the coming 6-7 months, and this should mean more insurers offering cover at a more affordable rate.
You may consider changing the expiry date to 1st January 2024, as that is when all insurers must come on board with the cyclone reinsurance pool.
If you haven't paid the policy, it may be worth speaking with a broker as they may be able to offer the same policy on a no commission and fee for service basis, which may save you in premium. Likewise, they may have other insurers available that have not been considered.
This information is of a general nature only and neither represents nor is intended to be personal advice on any particular matter. Shandit Pty Ltd T/as Strata Insurance Solutions strongly suggests that no person should act specifically on the basis of the information in this document, but should obtain appropriate professional advice based on their own personal circumstances. Shandit Pty Ltd T/As Strata Insurance Solutions is a Corporate Authorised Representative (No. 404246) of Insurance Advisenent Australia AFSL No 240549, ABN 15 003 886 687.
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Tyrone Shandiman is a seasoned professional in the insurance industry having embarked on his journey in 2004 within the financial services sector. In 2011, he established Strata Insurance Solutions, transforming a garage startup into a reputable firm servicing over 900 clients with a dedicated focus on strata insurance. Tyrone's role extends beyond managing operations and tackling complex insurance matters; he also founded the Australian Consumers Insurance Lobby, championing consumer rights within the insurance industry. Notably, his efforts and expertise have been acknowledged with numerous industry awards. Adding to these accolades, Strata Insurance Solutions was recently named an Australian Top Brokerage by Insurance Business Australia Magazine, a testament to the firm's excellence and leadership in the field. Tyrone is a regular contributor to LookUpStrata.
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